TTD Industries Limited purchased a strip mine for cash on April $1,2023$ at a cost of $$5,121,000.$ TTD expects to operate the mine for

$10$ years, at which it is legally required to restore the surrounding area to its original state. It is estimated that it will cost $$546,000$ to

do this at the end of the mine's useful life. The company's year$-$end is December $31,$ and TTD follows ASPE.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the purchase of the mine and to record the asset retirement obligation for the mine on April $1,$

Based on the effective interest rate of $5\%,$ the present value of the asset retirement obligation $($i$.$e$.,$ its fair value$)$ on the date

of acquisition is $$335,197.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all

debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Apr. $1,$

$2023$

Mineral Resources

Asset Retirement Obligation Your answer is partially correct.

Prepare any journal entries required for the mine $($straight$-$line depreciation$)$ and the asset retirement obligation at December $31,$

The estimated residual value of the mine is zero. $($Round answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are

automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31,$

$2023$

Depreciation Expense

Accumulated Depreciation $-$ Mineral Resources

$($To record depletion for the year$)$

Dec. $31,$

$2023$

Asset Retirement Obligation

$($To record accretion expense for the year$)$

Please send the two solutions for Dec $31,2023$ JE on the second photo. Thanks